Course name: Cost and Management Accounting
Course code: PSM 2206
Level of course: Year II Semester II
Credit units: 4 CU
Brief Course Description
The course is aimed at equipping students with basic knowledge on the costs in an organization and how these costs can be efficiently and effectively managed. The students will be equipped on general knowledge on the key principles and techniques in costing. Further exploration will be made on material costing, labour costing and overhead costing together with an introduction on costing systems and methods
Course Objectives:
1. To expose students to the various cost accounting principles and concepts
2. To equip students with the knowledge required to generate and interpret cost data
3. To be able to cost various activities and products
Learning outcomes
By the end of this course students should be able to:
1. Explain the various cost accounting principles and concepts
2. Generate and interpret cost data
3. Cost various activities and products
Detailed Course Description (content)
1 Introduction to cost accounting (6 hours)
Meaning and scope, importance of costing,
Costing basic concepts and principles
Cost behavior and Classification of costs
Costs units
2 Material costing and control (6 hours)
Classification of materials
Procurement of materials
Coding of materials and stock control techniques
Pricing of materials and stocktaking
Stores layout
3 Labour costs and control (6 hours)
Classification of labour costs
engagement of employees / Recruitment procedure
Methods of recording time or work done
Methods of labour remuneration
Payroll accounting and management
4 Accounting for overhead costs (6 hours)
Classification of overheads
Allocation and apportionment of factory overheads
Methods of apportioning costs
Overhead absorption
Overhead control accounts
5 Costing techniques and systems (6 hours)
Activity based costing
Interlocking and integrated costing systems
6 Activity Based Costing (6 hours)
• Reasons for the development of ABC
• Steps followed in implementing ABC
• Advantages and disadvantages of ABC
• Similarities and differences between ABC and the traditional costing system
• Determining costs and prices using ABC and the traditional costing system
7 Costs-Volume Profit Relationships and Decision Making: (6 hours)
• Break-even analysis: Assumptions and its importance in short term decision-making;
• Break-even and tax
• Margin of safety
• Multi-product break-even
8 Short-term decisions (6 hours)
• Relevant costing and decision making;
• Make or buy
• Special offers
• Shut-down
• Limiting factor situations
9 Budget and Budgetary Control Procedures: (6 hours)
• Stages in budgeting process;
• The role of budgeting in organizational control;
• Approaches in budgeting (incremental, zero-base budgeting, activity-based budgeting, etc.).
• Preparation of operating and master budgets,
• Fixed and flexible budgeting; budgetary control procedures.
10 Standard Costing and variance analysis: (6 hours)
• Preparation of standard costs,
• Analysis of variance including, material cost variances, labor cost variances, overheads cost variances, mix and yield variances, total cost variances; sales variances;
Mode of delivery
• Lectures
• Group discussions
• Take-home Exercises
• Case studies
• Class discussions and presentations
Mode of assessment
• Take home Coursework 15%
• Test 15%
Individual cw 15%
Attendance 5%
• Final Examination 50%
References
ACCA Study Text, Paper F2 (2011).Management Accounting. London: Kaplan/BPP Publishing.
ACCA Study Text, Paper F5 (2011).Performance Management. London: Kaplan/BPP Publishing.
Colin Drury (2000), Management and Cost Accounting. Chapman Hall (6thed.)
Kaplan & Atkinson (1996), Advanced Management Accounting 3rd edition
Lucey, T. (2005).Costing.6th Edition. London: Thomson.
N.Arora (1998), Cost Principles
Colin D. (2010) Management and cost accounting, 6th Ed. Thompson Business Press, London
Kamukama, A. N. (2006) Cost and Management Accounting; ISBN.
- Teacher: Richard Odoki
- Enrolled students: 1